Cooper reports $6 million 2Q loss, international business beat 2019 result
Cooper Tire & Rubber Company reported a second quarter 2020 net loss of US$6 million on 3 August 2020 compared with net income of $9 million in the same period last year. Net sales decreased 26.9 per cent to $496 million. Operating profit was $5 million, or 1.1 per cent of net sales, compared to operating profit of $32 million (4.7 per cent of net sales) in 2019.
Goodyear expanding direct online tyre sales across Europe
Goodyear has been marketing its passenger car tyres in Germany directly to end users for fitting by a listed partner for roughly six months. And for years before that there has been a noticeable trend towards online selling. Following on from our online preview article, Tyres & Accessories’ German group publication Neue Reifenzeitung interviewed David Anckaert, vice president Commercial Europe at The Goodyear Tire & Rubber Company and began by asking: is it too early to draw initial conclusions? And where’s next?
Goodyear Tire & Rubber reported a Q2 2020 net loss of $696 million ($2.97 per share) compared to net income of $54 million ($0.23 per share) a year ago in financial results released 31 July 2020. Goodyears second quarter 2020 sales were $2.1 billion, down 41 per cent compared with a year ago. According to the company, the decline was driven by “lower industry volume and reduced sales from other tyre-related businesses.” However, there are signs that demand is improving.
At the end of July a significant chapter in the history of Tyres & Accessories came to an end, with the closure of the companys offices in Clacton-on-Sea. The closure has been hastened by the effects arising from the coronavirus pandemic, and means that all editorial, administrative and advertising functions are now handled exclusively by the companys head office in Stoke-on-Trent. This meant that T&As two longest-serving employees could enjoy a well-deserved retirement. Advertising manager Alan Day joined the magazine early in 1990, while company secretary Pat Aldous was employed for six weeks maternity cover in 1977. It proved to be a long six weeks, as she never left! Alan and Pats friends and colleagues - both in the UK and in Germany and Italy - wish them all the best for a long and happy retirement.
Tencent and Linglong partner in online marketing drive
On July 10, Linglong Tire signed a strategic cooperation agreement with Tencent Cloud and Huazhi. As a result, the three parties will cooperate on smart marketing and industrial digitalization based on “the world’s first industrial Internet platform for the tyre industry, aiming at helping Linglong realize the transformation from traditional manufacturing to intelligent manufacturing, while seizing the aftermarket and improving the overall digital marketing and service level.”
Magna Tyres Group has opened a sales office in the Czech Republic. It said the move has been in response to demand for the Magna range of OTR ad specialist tyres in Eastern Europe. It added that it has been encouraged by “unutilised market potential in this region.” The region was previously serviced by its Polish office.
Mitsubishi is withdrawing from the UK and Europe, confirming it will not bring any new models to the continent. Stocks of existing models, including the popular Outlander PHEV and L200 pick-up, will continue to be sold until they no longer meet emissions regulations. Aftersales support will be provided by existing dealers and the Colt Car Company, which imports Mitsubishi vehicles to the UK.
Falken launches ‘Pass the Wheel’ social media campaign
The coronavirus pandemic has put many visits to dream destinations on hold, but Falken Tyres is using its social media feeds to provide some vicarious thrills. The Sumitomo tyre brand’s new ‘Pass the Wheel’ campaign comprises three beautifully shot videos to provide a virtual road trip along some of Europe’s most beautiful roads and passes. The videos show the drive from Zell am See in Austria, across Switzerland, Italy and France, and into Monaco. The campaign trailer has already clocked up 1.7 million views on Falken’s YouTube Channel.
Yokohama to supply Advan Sport V107 to new Mercedes AMGs
Yokohama has been chosen by Mercedes-AMG to supply original tyres on several new models. The Mercedes-AMG GLE 53 4MATIC+ Coupé, GLE 63 4MATIC+, GLE 63 4MATIC+ Coupé, GLA 35 4MATIC, GLA 45 4MATIC+ and GLA 45 S 4MATIC+ will all run on the Japanese tyre manufacturer’s Advan Sport V107.
Michelin sales contract 20.6% in first half of 2020
Michelin sales contracted more than 20 per cent in the first half of 2020 due to coronavirus affected markets. The 20.6 per cent contraction in sales resulted in an operating result of 310 million euros – 3.3 per cent of sales – 78.5 per cent less than in 2019 (1,438 billion euros). Volumes fell by 22.4 per cent. Operating income went from 1.381 billion to 177 million euros, while net income fell from 844 million to a loss of 137 million, with earnings per share going from 4.74 euros to a loss of 0.75 euros.
GRI reiterates role of sustainability in a post-Covid world
Global demand for natural rubber is outpacing supply, so stakeholders in the global tyre industry need to ensure sustainability is a guiding ethos in its operations, GRI states. The Sri Lankan manufacturer says sustainability in sourcing, production and disposal are key to its goals.
Shifts in leading tyre manufacturer rankings, 2015-2019
Over the last five years of data collection for the Tyres & Accessories’ ranking of the leading tyre manufacturers, a few trends can be observed – see accompanying graphs for more details. Firstly, it is easy to see that there are a few separate groupings of rival companies within the top ten. In our first chart, we can see that Continental has continued to progress in narrowing the tyre sales gap with Goodyear, partially because Goodyear has yet to regain the level of sales achieved in 2015, despite improved results on its half-decade low in 2017. Tyrepress noted in 2018 that based on tyre volumes, Conti looked likely to overtake Goodyear in light vehicle (passenger car and light truck) tyre volumes, showing how it has gained ground on the previous ‘Big Three’. Regardless of their order, it has been appropriate to talk of a global Big Four tyre manufacturers for a few years.
Mahansaria Tyres Private Limited (MTPL) completes acquisition of EATD
Mahansaria Tyres Private Ltd (MTPL) has completed the previously announced acquisition of a majority stake in European Agriculture Tyre Distributor (EATD). As a result, EATD has relocated its operations from Strijen, The Netherlands, to Wallenhorst in Germany.
Engine products and drive systems supplier Dayco has opened a food bank at two of its Italian facilities, in order to further support those in need via the Italian Red Cross. The Covid-19 pandemic has negatively impacted the world economy and had serious consequences on a regional level, which has also affected many communities.
Cooper Tire expands Kruševac, Serbia factory by a third
Cooper Tire has invested in increasing production capacity at its Kruševac, Serbia tyre manufacturing plant. – Cooper Tire Serbia, a subsidiary of Cooper Tire & Rubber Company, is managing the US$55 million equipment upgrade and facility upgrade project. As a result of the investment, Cooper’s Kruševac facility will expand to more than 882,000 square feet, adding 118 new jobs.